Even if it's not a huge purchase, we think it was good to see that Sean Bilton, the CEO, MD & Director of Estia Health Limited (ASX:EHE) recently shelled out AU$106k to buy stock, at AU$2.18 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.
The Last 12 Months Of Insider Transactions At Estia Health
In fact, the recent purchase by Sean Bilton was the biggest purchase of Estia Health shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$2.09. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Sean Bilton was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Estia Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Estia Health Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Estia Health insiders own 2.7% of the company, worth about AU$15m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Estia Health Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Estia Health we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Estia Health, you should check out this free report on analyst forecasts for the company.
Of course Estia Health may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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